Cave Shoe Manufacturer Crocs Lost A Net Loss Of $27 Million 700 Thousand In The Third Quarter

Shoe manufacturer

The third quarter performance report, which is looking for a revival, has a net loss of $27 million 700 thousand in the third quarter and a loss of 37 cents per share, less than $12 million in the same period last year, and lower than the expected average earnings per share of 10 cents.

According to the financial report, the Crocs revenue in the third quarter was US $274 million 80 thousand, down 9% from the US $302 million 400 thousand in the same period last year.

Gregg Ribatt, a group chief executive who joined Crocs last year, said in a statement that the company's performance declined after being trapped in the global money market volatility and China's macroeconomic slowdown. After excluding the change in the exchange rate and ignoring the impact of the mode adjustment, the group gained 3.7% growth in the three quarter.

According to the financial report, the Crocs's inventory was reduced to $19 million in the third quarter, and the company also paid $4 million for Chinese dealers.

However, Gregg said the loss will help the group's future performance. The company is actively engaged in business pformation, but the pformation plan will last 18-24 months and is expected to be fully reflected in the first half of next year.

In 2007,

Red star became the star of the American mall, with annual sales of $847 million, an increase of 137% over the previous year.

After the fire in the hole, Crocs also tried to expand its products, and launched various footwear styles such as Othello shoes, high heeled boots and so on.

Former Crocs chief executive John McCarvel also regards the hole shoe as a bait to attract consumers and put it on the inside of the shelf, so that consumers will have more access to other products of Crocs.

But this plan did not succeed, because with the past of the hole shoe craze, Crocs did not attract consumers' new products. The company was labeled with obsolete, monotonous and outdated labels, and consumers began to question the health of the cave shoes.

Last year, Andrew Rees, chairman of Crocs, started restructured company, trying to reinvigorate its performance by laying off workers, closing stores and reducing the number of commodities.

Crocs has also appointed Gregg Ribatt, who has more than 20 years experience in footwear and apparel consumer products industry as its chief executive officer. Gregg has been the Spanx Inc., footwear retailer Collective Brands Inc. and high-end shoe footwear brand Stuart Weitzman chair executive officer.

Now, Crocs has abandoned the strategy of diversification of its predecessor CEO products, and has begun to return to the cave shoes. It hopes to make this single product into a classic product that will not be out of date and win the favor of consumers.

However, compared to 2007, the market environment is more complicated. For example, Dansko and Eneslow shoes brand brands have launched similar comfort shoes. Consumers can choose more, and Crocs will face more intense competition.